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The World Bank Group’s Doing Business website ranks countries for ease of doing business. Panama ranks 81st out of 181 economies ranked. Panama ranks 8th in doing business across borders and 28th in getting credit for doing business. Within the Western Hemisphere Panama ranks 11th overall out of 31 countries.

A recent change in credit history law improved credit availability in Panama for roughly 300,000 small and medium sized businesses. These businesses employ nearly 68 percent of Panama’s workforce.

As a practical matter Panamanians have traditionally had to rely on pawnshops and street lenders charging 10% every two weeks for credit. The availability of traditional credit to these people is a world changing event.

Panama Real Estate Investment and Ease of Doing Business

Panama is the country at the South end of Central America. As the narrowest spot in the Americas it is the location of the Panama Canal which connects Atlantic and Pacific. Panama’s central location between North and South America makes Panama a transportation hub and a place for doing business in transportation, repackaging and reshipping, and light assembly of parts. Panama has been doing business in oil transshipment since the building of Alaska pipeline and the need to move that crude oil to US gulf coast refineries. Panama may soon be doing business in refining oil near the deep water port at Puerto Armuellas. The Colon Free Trade Zone has been doing business in receiving, repackaging, and resending container shipments for years. It is said that 40% of South American bound container shipments pass through the Panama Canal.

Panama real estate investment has done well in the last years as North Americans have bought second homes and often taken advantage of Panama’s residency laws to retire in the tropics. Panama real estate investment continues to do well as Panama is making investment in a number of mega projects such as the Panama Canal Expansion. These projects not only create jobs during construction but broaden Panama’s economic base providing the opportunity for more investment and wealth creation over time.

As the doing business in Panama numbers show Panama can hold it own in many of the ease of doing business numbers. However, the best way to avoid dealing with business paperwork and employees in Panama is to buy, develop, and lease real estate. Your investment in Panama real estate will grow year by year and as Panama’s economy moves on your returns on investment will grow. Let someone else deal with the paperwork and reap the rewards of Panama’s economic boom.

For more information on real estate investment in Panama contact us at ABPanama. We do business throughout Panama and have over 23 years experience managing real estate portfolios.